indie Semiconductor, Inc.

Good afternoon and welcome to Indy Semiconductor's fourth quarter 2024 earnings call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference call is being recorded. I will now turn the call over to Ashish Gupta, Investor Relations. Mr. Gupta, please go ahead.

Thank you, Operator. Good afternoon and welcome to Indy Semiconductor's fourth quarter 2024 earnings call. Joining me today are Donald McClimat, Indy's co-founder and CEO, Raja Bal, Indy's CFO, and Mark Tindall, head of corporate development and investor relations. Donald will provide opening remarks and discuss business highlights, followed by Raja's review of Indy's Q4 results and Q1 outlook. Please note that we've been making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative about views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For material risks and other important factors that can affect our financial results, please review our risk factors in our annual report on Form 10-K for the fiscal year ended December 31, 2023, as well as other public reports filed with the SEC. Finally, the results and guidance discussed today are based on consolidated non-GAAP financial measures, such as non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, and non-GAAP net loss per share. For complete reconciliation to GAAP and the definition of the non-GAAP reconciling items, please see our Q4 earnings press release, which was issued in advance of this call and can be found on our website at www.indy.inc. I'll now turn the call over to Donald.

Thanks, Ashish, and welcome everybody. Let me first review our financial performance within the context of the overall automotive market environment before focusing on Indy's business achievements. During the fourth quarter of 2024, Indy achieved total revenue of $58 million, coming in at the midpoint of our guidance and marking our second quarter of sequential revenue growth as well as another quarter of outperformance versus the industry as we continue to gain market share. Last quarter, I highlighted the uncertainty in the automotive market and the near-term challenges impacting the automotive industry. This market context did not meaningfully change through the fourth quarter. Thus, the sequential growth in our Q4 results demonstrated Indy's resilient business performance. However, in recent weeks, market uncertainty has actually accelerated. Impending tariffs have exacerbated the challenging market situation, adding to the ongoing inventory and end customer demand issues. Traditional manufacturers could be particularly impacted by cross-border tariffs between the U.S. and Mexico or Canada, with component parts sometimes crossing the border up to half a dozen times. As an example, Ford recently told suppliers that the update for their mainstay F-150 model range scheduled for 2027 will now be delayed to 2028 as a result. That said, the long-term megatrends of ADAS, in-cabin user experience, and electrification do remain very strong. and INDI is ideally positioned to capitalize on those markets. 2025 will be an important year for INDI as we begin realizing the benefits of our multi-year investments across our product portfolio with multiple ramps in power delivery, in-car networking, ultrasonic intruder detection, vehicle access, vision-based driver and occupant monitoring, and our key corner radar program later in the year. I have spoken at length about the key drivers for these megatrends previously, principally global regulation for vehicle safety, reduced emissions, and an accelerating consumer desire for more immersive in-cabin user experiences. The key takeaway is that Indy is unique amongst its peers with its ability to deliver outsized market growth across these megatrends by leveraging a class-leading, highly differentiated, and diverse product technology portfolio. Now, let me share some of the notable business progress which we achieved in the fourth quarter. Our vision products, targeting multiple ADAS applications continue to gain strong traction with multiple global customers. I'm excited to share that our flagship IND880 vision processor was recently selected for both front sensing and occupant monitoring applications by a large Korean OEM for a new e-vehicle platform, starting production in 2027. Additionally, we had several design wins for IND880 in China for multi-channel sensor applications, IND 880's low power, low latency, and fast initialization capabilities set it apart from incumbents for applications which are now rapidly growing in popularity with China OEMs. Finally, the major driver monitoring design wins for General Motors, Toyota, and Ford that we shared last year for our Vision products continue on track through the normal, structured Tier 1-led system validation and productionization phases, with first production commencing later this year. Turning to our flagship 77 GHz radar program, our lead customer continues to successfully progress through their productionization and remains on track for production launch with multiple OEMs. The initial shipments will begin in late 2025. Additionally, I am pleased to share that engineering samples for our 120 GHz radar solution for in-cabin occupant monitoring applications have recently been received and tested, and we have already successfully demonstrated these to multiple lead customers, eliciting extremely positive feedback. According to S&P Global Mobility, ultrasonic and radar-based automotive sensing will represent a $6 billion market opportunity in 2029, up from $4 billion last year, and we anticipate capturing further wins for our solution, which features the industry's most advanced technologies. In this segment, by virtue of operational frequency and the innovation of integrated antennas, Indy is a clear leader in the market, allowing us to address not only the automotive segment, but also emerging industrial mobility applications. Looking into our medium-term future, we see ever-growing applications for our automotive products, particularly Vision, Radar, and LiDAR, in industrial spaces, including robotics and manufacturing automation, which we plan to exploit. Turning to in-cabin user experience, we are able to announce a major win for our vehicle intrusion detection system with a major German OEM, which will commence full production ramp-up in the second half of this year. Switching to electrification, a major milestone for the company in the fourth quarter was the announcement of our first product independently certified to the highest automotive functional safety level, ASIL-D, as defined by the ISO standard. This certification is a testament to Indy's rigorous internal development processes and also the silicon design innovation deployed to ensure a safe and predictable chip response in the event of a failure. The independent assessment and certification of this solution brings confidence to our customers' mission-critical powertrain use case and highlights Indy's ability to deliver the most demanding of applications. Finally, our photonics business continues its class-leading product innovation in the LiDAR field, announcing the fourth quarter and in-house optical component integration capability for those customers needing turnkey photonics solutions for automotive and mobility sensing applications. We also announced our latest proprietary technology innovation for single-frequency lasers, bringing exceptional wavelength stability and spectral purity, which require very high brightness, color reproducibility, and contrast ratio. Despite challenging market conditions, the Megatrend-driven vehicle semiconductor content growth will easily outpace vehicle production, driving the average semiconductor content per vehicle in 2025 beyond $1,000, and two to three times its value for premium vehicles and e-vehicles. In this context, with our unrivaled product portfolio, Indy remains incredibly well positioned to benefit from this semiconductor value growth over the long term. M&A has always been an important element of our strategy to enhance our technology and IP portfolio. Given our current strong balance sheet, we continue to appraise multiple opportunities, focusing on our core business areas. I will now turn the call over to Raja for a discussion of our Q4 results and Q1 outlook.